How the "Busy Road Factor" Affects the Sale of Your Home

Busy Road Factor Selling a Minnesota Home

As a REALTOR®, people across the north and east Minneapolis/St Paul metro area  contact me to provide comparative market analyses on their homes. I work hard to get the price right whether it is for a single family home, a townhome, an acreage estate or a lakeshore getaway. Getting the price right is imperative in this changed real estate market. I use a system to check the comparative homes sold in the past 3-4 months and add and subtract for differences in each particular home. But every once in a while there are homes that are affected by what I call the "Busy Road Factor". These are situations that are unique to the property but will dramatically affect the number of interested buyers.

My daily travels as an Anoka & Washington County real estate agent take me along many of the same major roads day after day.  County roads are wonderful short cuts through the north and east metro as most are posted 55mph and they crisscross the communities of Ham Lake, Lino Lakes, Forest Lake, Columbus and White Bear Lake. There are many residential developments adjacent to these well-traveled roads.

Of course I notice several for sale signs along these roads as they have become a part of the landscape that doesn't change as quickly as it had in the past. Often a sign goes up and then 6 months or a year later the sign is switched out on the same house when they try a new real estate agent...again and again. In fact there is one home I have watched over the past 3 years switch out every six months to a new broker. I think they are on their sixth agent with no sale yet. I is not just the buyer's market causing this situation. This home and other properties like it located on well traveled roads are affected by "the busy road factor". It is a lethal combination with the buyers' market for a sale of residential home. A home seller is literally dead in the water before the house is listed if they do not account for the negative impact the road will have on their sale price.

"Location, Location Location" is the real estate mantra. If your home is located on a busy road, you cannot change it. But you can change the price. In order to sell, it is necessary to price your home significantly lower than all other homes on the market with similar features  to attract buyers.

This phenomena does not only affect properties on busy roads! There are other undesirable location situations that are very tough sells when the market is good but become next to impossible when there are many homes for the buyers to select from.  These unwanted locations include properties which are next to or near the following:

• Cemeteries
• Industrial Parks
• Huge Power Lines/Transformers
• Gas Pipelines
• Landfills
• Airports
• Prisons
• Flood plains
• Train Tracks 
• Shopping centers 
• Gas Stations
• Open Land either for sale or not that has undetermined development potential
• Gun ranges 
• Auto Salvage Yards and other disposal businesses

So how can you deal with the Busy Road Factor and get the house SOLD?

1. Be Realistic. Don't ignore the elephant in the room. Set your price reflecting the undesirable location
2. Best Foot Forward Make sure everything else regarding your home is a positive. All repairs done, stage the home and market its unique positive features. 
3. Work with a Professional REALTOR® An experienced professional real estate agent can assist you in pricing your home correctly factoring in all adverse conditions.
4. Be Ready to Negotiate. When buyers submit a purchase agreement for review, don't pass on a low offer. Counter and try to reach terms that are acceptable for both parties.
5. Be Patient. In most cases, a property affected by the Busy Road Factor, will required twice the market time compared to the average home.

Copyright 2012 www.terieckholm.com

Top 10 Reasons People L♥VE to Call OAKDALE, Minnesota HOME

Oakdale, Minnesota has its roots in agriculture, railroads and resorts. Early settlers to the area in the 1800’s chose the name for the groves of trees that enhanced the landscape. It started as a township organized in the 1850’s but it was over a century before Oakdale became a city. At one point Hudson Road at the south end of the city was an established stagecoach route to Chicago. Two railroads stations were an important part of putting Oakdale on the map. Lake Demontreville was once a popular summer home area for wealthy city dwellers, though it was once a part of Oakdale Township, it is now in neighboring Lake Elmo. From its humble beginnings, Oakdale became a city in 1974 and is noted worldwide for being headquarters for 3M and Imation. It is no longer a farming community. In the 1990’s the city became a growth suburb and expanded in population from just over 18,000 to nearly 27,000 residents which is where the estimates are today.Here is a top ten list of reasons why Oakdale Minnesota is such a great place to live:

#10—Oakdale Summerfest. The annual event held every June features everything to celebrate summer! Parade, Oakdale royalty coronation, carnival rides, baseball/softball tourney, crafts and more are combined to make this a memory-making event for area residents.

#9—Fish or Swim. Oakdale’s Tanners Lake is fabulous places to share a day with friends at the beach or on the dock! Tanners is a wonderful place to spend an afternoon.

#8—Tee Off at Oak Marsh. Play 18 holes among the wetlands on this centrally located 70 par course. Not a golfer? The pros at Oak Marsh can help you learn. Even if golf isn’t your thing, you can enjoy a fantastic dinner and view. The Oak Marsh clubhouse is known for hosting everything from class reunions to wedding receptions as it boasts a full service banquet facility.

#7—Awesome Schools. Castle, Eagle Point, Oakdale and Skyview are the public elementary schools within the borders of Oakdale. All are part of the North St. Paul/Maplewood/Oakdale District 622 along and Skyview Middle School and Tartan High School. GO Titans! Additionally, there are several private schools in the community including Paidea Child Development Center and Transfiguration Elementary

#6—Parks and Open Spaces. Dozens of parks and open spaces to explore, picnic and play at are scattered throughout the City of Oakdale. There is one a short walk or bike ride away from nearly every residential community. Explore and enjoy!

#5—Industrial Innovation! Oakdale can celebrate being home to innovative corporations including Imation and 3M! Okay technically 3M Corporation is on Oakdale/St. Paul border but many Oakdale residents work at this company that is world renown for creating exciting new products.

#4—Entertainment! Looking for a great movie or place to eat? Oakdale has an eclectic variety of choices for every age group. Yelp and Metromix searches for Oakdale indicate there are culinary choices including Mexican, Chinese, Italian and Lebanese dining options.

#3— Discover Nature. Hands on exhibits and 220 acres of prairieland to explore make the Oakdale Nature Preserve and Discovery Center a fun family destination. Discover art; learn about nature; hike, bike & cross-country ski along miles of trails; or just sit back and enjoy view of the 28 acre lake from the observation dock. There is much to do at this award winning facility in the heart of Oakdale.

#2—Eclectic Options for Living. Whether you want the convenience of a low-maintenance townhome a 1950’s rambler or bungalow, or a recently constructed, modified two-story, you can find an affordable option to rent or purchase in Oakdale.

#1—Friendly People. The number one reason for living in Oakdale is the welcoming community atmosphere. Isn’t that what most people search for in a place to call home?

Copyright 2011 www.terieckholm.com

“They Don’t Need an Agent!”—How First Time Homebuyers Find their Way Home!

My cell phone rang as I pulled into the parking lot of my RE/MAX real estate office in White Bear Lake one afternoon. The caller said he and his fiancée had just driven by a listing of mine and could I show them the inside. My first question is always, “Are you working with a real estate agent?” “No”, he answered. The meeting was set for the next evening.

The young man and his fiancée arrived with an entourage of parents and assorted other friends and relatives. Being first time buyers, they wanted assistance and approval on their very first home purchase. Looking over the home from top to bottom, they liked what they saw but needed time to think. I asked the question I always ask, “When you are shopping for a home, are you shopping for a REALTOR®?” One of the dads quickly answered. They don’t need an agent and won’t be signing any contract with a buyer’s agent. They will get a better deal working directly with the listing agent.

I explained why this wasn’t true but could tell from the look on this dad’s face, he wasn’t about to believe me.

I avoided the debate but went on to explain agency to the young couple. I asked them to sign the disclosure on agency as required by the State of Minnesota. Buyers need to understand that with any of my broker's listings, I am under contract to work for the seller and protect their interests. However, if the couple decides to sign a buyers’ representation agreement with me, they would be in a DUAL agency when looking at any property currently listed with RE/MAX Specialists. They had seen many homes over the last several weeks with dozens of other REALTORS®, but I was the only listing agent who explained agency to them or asked them to sign the required disclosure.

Days later, a decision was made; the young couple wanted to make an offer on my listing. A contract was signed for buyers’ representation for the specific home only. Dual agency now applies. As an agent working for both parties, I could not do anything that would hurt either the buyer or seller. Because the agreement was only for the specific home, I could not discuss other property options. An offer was presented, but terms could not be agreed upon. The buyers went away.

A few weeks the price was reduced on my listing. I called this young couple to see if the lower price would be enough to renew their interest. It would. But there was also another new construction house in a different area that was being considered.

Another showing. They were sure that they had it down to between the two homes. I could see the indecision and confusion on their faces. I asked about the other home they were considering to help them contrast it to my listing to help my selling clients and put their home in a better light. As with most homes, neither home was a perfect fit. I am a firm believer that after weighing all of the pluses and minuses, homes will sell themselves if they are the right home. A week passed. No offer came forth.

Finally a phone call came from the young man. We have made a decision. We are not going to offer again on your listing. It is not the right home for us. In fact, neither home is right. We are starting over and think we need our own agent. "Would you help us find a home?"

Now as their buyers’ representative, I got to work. For the next few weeks, we visited half a dozen or so homes from the hundreds currently on the MLS that met their criteria. Traveling from Stillwater to White Bear Lake and Hugo to Forest Lake, we narrowed down the field of potential homes to a couple of favorite houses. Finally, one sparked enough interest for a second showing with the parents, but this home also had a few quirks that raised concerns. That same evening, since we were out, I set up another showing for a home in a development that hadn't considered but I knew would be a very good match for their needs. As it turned out, the second home was perfect for these buyers!

With the perfect home, there was no delay or hesitation in signing the offer. Things fell into place. With every visit to the home for the inspection and showings, the young couple became more excited about their first home.

At the final walk-through, with minutes to go before they were to receive the keys to their first home, I asked them, “So, are you glad that you decided to sign with a REALTOR®?”

They answered together, “Yes!! You made it so much easier to find the right home! Especially for first time buyers.” I don’t make this stuff up…Those were their exact words.

After the closing, I received a hug and sincere, “thank you for everything”, from my young clients. As they set off to begin life in their dream home a thought struck me, I absolutely LOVE my job!

Counties in Minnesota.



Copyright 2010 Teri Eckholm